United Airlines' PR Disaster Perfectly Illustrates the Need For a Reputation Restoration Policy -- a Captive Specialty
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Last week, footage of the Chicago Transit Police forcibly removing a United passenger went viral. But just as shocking was United’s response. Their first public statement will go down in public relations history as one of the most tone deaf responses ever. It took the company 24 hours and three attempts before its communications contained the appropriate level of contrition. In the intervening period, their stock price dropped and public perception of the company plummeted.
United is clearly a company that needs to engage in an aggressive PR campaign to right their image with the flying public. If they had a captive insurance company (and, like most Fortune 500 companies, they probably do) and had the foresight to properly underwrite a group of business policies, they would have a reputational restoration policy that would reimburse the parent company for PR expenses and some of the lost income.
This is simply one more real world example where a captive could provide insurance not underwritten by traditional third party carriers.